Indonesia looks for investors in a new sovereign bond

Citigroup, Deutsche Bank and UBS help officials from Southeast Asia's largest economy meet with investors starting Friday.
Indonesia plans to kick off its investor roadshow for an offshore dollar-denominated bond on Friday in Hong Kong and Singapore.

Citigroup, Deutsche Bank and UBS will be acting as joint bookrunners and lead managers for the bond offering and will talk to investors in Dubai and Boston on Monday, February 5 and London and New York the next day.

Although, the specific amount hasnÆt been decided yet, sources say it is likely to be between $1 billion and $2 billion, for a bond with a maturity of 15-years or 30-year or a combination of both.

Indonesia last sold international bonds in March 2006, with a $2 billion, dual-tranche issue of 2017 securities. The country has about $78 billion of outstanding bonds, with $28 billion maturing this year, according to Bloomberg data.

But it needs more money to build new roads, ports and improve telecommunications, a top priority for the government of Susilo Bambang Yudhoyono who swept into office in 2004 when he won the presidential election with a record-breaking 60.9% of the popular vote after he promised to improve infrastructure throughout the nation. In November, the government earmarked 10 so-called ômodelö infrastructure projects valued at $4.4 billion that it wants to lure foreign investors to put money into directly. In addition, however, it has some 101 other projects, valued at about $14.7 billion, that it wants to kick off soon.

Fitch Ratings upped its outlook on IndonesiaÆs foreign-currency debt to ôpositiveö from ôstableö last week stating that the government has improved finances. Fitch rates Indonesia BB-, three levels below investment grade. The country is rated BB-minus by Standard & Poor's, while MoodyÆs Investors Service puts the country one level lower at B1.
¬ Haymarket Media Limited. All rights reserved.